Denmark's AL Sydbank Q1 core income up 72% after merger

AL Sydbank A/S

06/05/2026 07:06

Overview

Denmark bank's Q1 net income was DKK 803 mln, return on tangible equity 11.8%

Core income rose 72% yr/yr, but figures not directly comparable due to merger

Bank initiated DKK 1.1 bln share buyback, remains highly capitalised

Outlook

AL Sydbank expects 2026 profit after tax of DKK 3,500-4,000m

Company projects moderate growth for the Danish economy in 2026

Outlook is subject to uncertainty from financial markets and macroeconomic factors

Result Drivers

MERGER INTEGRATION - Co said successful integration of three banks and progress in branch network amalgamation supported Q1 performance

LENDING AND DEPOSIT GROWTH - Co reported increases in both lending and deposits in Q1 despite global uncertainty

RESILIENCE AMID UNCERTAINTY - Co said it maintained momentum and supported customers despite geopolitical and market volatility

Company press release: ID:nGNEcbSSX2

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
DKK 803 mln
Q1 CET 1 Capital Ratio
15.70%
Q1 Core Earnings Before Impairment
DKK 1.25 bln
Q1 Impairment of Loans
DKK 57 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for AL Sydbank A/S is DKK675.00, about 24.1% above its May 5 closing price of DKK544.00

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)